Current legislation in Washington, RCW 64.34.380 and 64.38.065, provide that condominium and homeowner associations shall prepare and update annually a Reserve Study, and that the initial Reserve Study must be based upon a visual site inspection conducted by a Reserve Study Professional.
- Year 1: Full Level I Reserve Study
- Year 2: Level III Reserve Study Update (Update without a site visit)
- Year 3: Level III Reserve Study Update (Update without a site visit)
- Year 4: Level II Reserve Study Update (Update with a site visit)
WHY HAVE A RESERVE STUDY COMPLETED?
In addition to the requirements of RCW 64.34 and 64.38, an increasing number of banks are requesting a copy of the association's reserve study for first and second mortgage applications of individual homeowners. A proper reserve study will:
- Protect the Board of Directors from personal liability concerning adequate reserve funding
- Eliminate uncertainty of over-funding or under-funding reserves
- Maintain the community in a good state repair
- Establish a fair & stable contribution for current and future owners
- Comply with the American Institute of CPA's (AICPA) annual audit requirements
- Maintain higher individual resale values
- Reduce the risk of special assessments or borrowing
HOW CAN WE HELP?
As Reserve Study specialists, we offer a professional assessment of the condition, useful life, remaining useful life, and replacement cost of the common and limited common area components an association has an obligation to maintain; an accurate financial analysis of the current reserve; and sound recommendations on the financial contributions necessary to ensure that funds will be available when needed. Collectively, David Bach & Associates has been preparing reserve studies for 14+ years serving more than 1,500 associations in the Pacific Northwest.
WHO ELSE CAN BENEFIT FROM A RESERVE STUDY?
Aside from Condominium and Homeowner Associations, the following types of properties may also benefit from the completion of a Reserve
- Country Club
- Athletic Club
- Swim Club
- Community Center
- Commercial Buildings
- Retirement Communities
- Churches and other Religious Buildings
- Government Properties
- Non-profit Organizations